To
The Members
SRG Housing Finance Limited
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OPINION
We have audited the accompanying Financial Statements of SRG Housing Finance Limited
("the Company") which comprise the Balance Sheet as at March 31, 2023, the
Statement of Profit and Loss, Cash Flow Statement and Statement of Changes in Equity for
the year then ended, and the notes to the standalone financial statements, including a
summary of the significant accounting policies and other explanatory information
("hereinafter referred to as the Financial Statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements, give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with Indian Accounting Standards prescribed under section 133 of
the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended
("Ind AS") and the accounting principles generally accepted in India,
a) In the case of the Balance Sheet, of the state of affairs of the Company as at March
31, 2023.
b) In the case of the Statement of Profit and Loss, of the profit including
comprehensive income for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that
date.
d) In the case of Statement of Changes in Equity, change in equity for the year ended
on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditors Responsibility for the Audit of the
Financial Statements section of our report. We are independent of the Company in
accordance
with the Code of Ethics issued by the Institute of Chartered Accountants of India
(ICAI) together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAIs Code of Ethics. We believe that the audit evidence obtained by us is
sufficient and appropriate to provide a basis for our audit opinion on the financial
statements.
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
The Companys management and Board of Directors are responsible for the preparation of
the other information. The other information comprises the information included in the
Management Discussion and Analysis, Directors report including the Annexures to
Directors report, Corporate Governance and Shareholders Information, but does not
include the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
When we read the other information, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with
governance as required under SA 720 The Auditors responsibilities Relating to Other
Information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companys management and Board of Directors are responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation of the Financial Statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, and cash flows of
the Company in accordance
with the accounting principles generally accepted in India, including the Indian
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of The
Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting the frauds and other
irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the Financial Statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management and Board of Directors are
responsible for assessing the Companys ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
AUDITORS RESPONSIBILITY
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial control relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the Management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
i. As required by the Companies (Auditors Report) Order, 2020 (the "Order")
issued by the Central Government in terms of Section 143(11) of the Act, we hereby give in
the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of
the Order to the extent applicable.
ii. As required by Section 143(3) of the Act, based on our audit we report that:
a. We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit of the financial
statements;
b. In our opinion, proper books of accounts as required by law have been kept by the
Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, the Statement of Changes in
Equity and the Cash Flow Statement dealt with by this Report are in agreement with the
books
of accounts maintained for the purpose or preparation of the financial statements;
d. In our opinion, the aforesaid financial statements comply with the Indian Accounting
Standards referred to in Section 133 of the Act read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e. On the basis of written representations received from the Directors and taken on
record by the Board of Directors, none of the Directors is disqualified as on March 31,
2023, from being appointed as a Director in terms of Section 164(2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in "Annexure B". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
g. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of The Companies (Audit and Auditors) Rules, 2014, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
i. The Company does not have any pending litigations which would impact its financial
position;
ii. The Company did not have any long-term contracts including derivatives contracts
for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company. (refer note 13.1)
iv. (a) The Management has represented that,
to the best of its knowledge and belief, as disclosed in the notes to the accounts, no
funds (which are material either individually or in the aggregate) have been advanced or
loaned or invested
(either from borrowed funds or share premium or any other sources or kind of funds) by
the Company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise that the Intermediary shall, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries. Refer note 56 to the financial statements.
v. (b) The Management has represented, that,
to the best of its knowledge and belief, as disclosed in the notes to accounts, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person(s) or entity(ies), including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
Company shall, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries. Refer note 56 to the financial statements.
vi. (c) Based on the audit procedures that
has been consider reasonable and appropriate in the circumstances, nothing has come to
our notice that has caused us to believe that the representations under sub clause (i) and
(ii) of Rule 11(e), as provided
under (a) and (b) above, contain any material mis-statement.
vii. The company has not declared or paid any dividend during the year and has not
proposed final dividend for the year.
viii. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining
books of account using accounting software which has a feature of recording audit trail
(edit log) facility is applicable to the Company w.e.f. April 1, 2023, and accordingly,
reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable
for the financial year ended March 31, 2023.
h. With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid to the Managing Director of the Company is in
accordance with the provisions of Section 197 along with Schedule V of Companies Act, 2013
and the remuneration limit is in accordance with the first proviso of Section 197(1) and
Schedule V of Companies Act, 2013.
|
For M/s Valawat & Associates, |
|
Chartered Accountants, |
|
(FRN: 003623C) |
|
Jinendra Jain |
|
Partner |
| Date:- 10-05-2023 |
M. No.072995 |
| Place: Udaipur |
UDIN:- 23072995 BGVUDO3068 |
Annexure A to the Independent Auditors Report
(Referred to in para 1 under "Report on other Legal and Regulatory
Requirement" of our report of even date on the accounts for the year ended March 31,
2023).
i. According to the information and explanations given to us, in respect of the
Property, Plant and Equipment & Intangible Assets:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of property, plant and equipment. The Company has
maintained proper records showing full particulars of intangible assets
(b) Property, plant and equipment have been physically verified by the management
during the year and no discrepancies between the book records and the physical inventory
have been noticed. In our opinion, the frequency of verification is reasonable.
(c) We report that the title deed of the immovable property is held in the name of the
Company as at the balance sheet date.
(d) We report that the Company has not revalued any of its Property, Plant and
Equipment including Right of Use Assets and intangible assets during the year.
(e) No proceedings have been initiated during the year or are pending against the
Company as at March 31, 2023 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
ii. (a) The Company does not have any inventory
and hence reporting under clause (ii) of paragraph 3 of the Order is not applicable.
(b) According to the explanations and information given to us, the Company has not been
sanctioned working capital limits in excess of 5 crores, hence reporting under clause
(ii)(b) of the Order is not applicable.
iii. According to the information and explanations given to us, the Company has made
investments in, and granted any loans or advances in the nature of loans, secured to
Companies, Firms,
Limited Liability Partnerships or other parties. The Company has not provided any
guarantee or security to any other entity during the year. With respect to such
investments and loans and advances:
a) The Companys principal business is to give loans, and hence reporting under clause
3(iii)(a) of the Order is not applicable.
b) The investments made and the terms and conditions of the grant of all the loans and
advances in the nature of loans, during the year are, in our opinion, prima facie, not
prejudicial to the Companys interest.
c) In respect of loans and advances in the nature of loans (together referred to as
"loan assets"), the schedule of repayment of principal and payment of interest
has been stipulated. Note no. 2 to the Financial Statements explains the Companys
accounting policy relating to impairment of financial assets which include loans assets.
In accordance with that policy, loan assets with balances as at March 31, 2023,
aggregating 1,096.90 Lakhs were categorised as credit impaired ("Stage 3") and
942.53 Lakhs were categorised as those where the credit risk has increased significantly
since initial recognition ("Stage 2"). Disclosurs in respect of such loans have
been provided in Note 4 to the Financial Statements. Additionally, out of loans and
advances in the nature of loans with balances as at the year-end aggregating 41,796.79
Lakhs, where credit risk has not significantly increased since initial recognition
(categorised as "Stage 1"), overdues in the repayment interest and/or principal
for Stage 1 & Stage 2 aggregating 284.25 Lakhs were also identified. In all other
cases, the repayment of principal and interest is regular. Having regard to the nature of
the Companys business and the volume of information involved, it is not practicable to
provide an itemised list of loan assets where
delinquencies in the repayment of principal and interest have been identified.
d) The total amount overdue for more than ninety days, in respect of loans and advances
in the nature of loans, as at the year-end is 791.44 Lakhs. Reasonable steps are been
taken by the Company for recovery of the principal and interest as stated in the
applicable Regulations and Loan Agreement.
e) The Companys principal business is to give loans and hence reporting under clause
3(iii) (e) of the Order is not applicable.
f) According to information and explanations given to us and based on the audit
procedures performed, the Company has not granted any loans or advances in the nature of
loans either repayable on demand or without specifying any terms or period of repayment
during the year. Hence, reporting under clause 3(iii)(f) is not applicable
iv. According to the information and explanations given to us, the Company has not
advanced any loan or given any guarantee or provided or securities to the parties covered
under section 185 of the Act. The Company has complied with the provisions of section 186
of the Act in respect of investments made or loans or guarantee or security provided to
the parties covered under section 186.
v. As per the Ministry of Corporate Affairs notification dated March 31, 2014 the
provisions of Sections 73 to 76 or any other relevant provisions of The Companies Act,
2013 and The Companies (Acceptance of Deposits) Rules, 2014, as amended, with regard to
the deposits accepted are not applicable to the Company. According to information and
explanations given to us, the Company has not accepted any deposits during the year.
Hence, reporting under clause 3(v) of the Order is not applicable.
vi. According to the information and explanations given to us, the Central Government
has not prescribed maintenance of cost records under Sub-Section (1) of Section 148 of the
Act, in respect of the activities carried on by the Company. Hence, reporting under clause
3(vi) of the Order is not applicable.
vii. According to the information and explanations given to us:
a) The Company is generally been regular in depositing undisputed statutory dues
including Goods and Services Tax, provident fund, employees state insurance, income-tax,
cess and any other statutory dues applicable to the Company to the appropriate
authorities.
b) There are no undisputed statutory dues payable in respect of GST, Provident Fund,
Employees State Insurance, Income-tax, cess and other material statutory dues in arrears
as at March 31, 2023 for a period of more than six months from the date they became
payable.
c) There were no dues referred in sub clause
(a) above which have not been deposited on account of disputes as at March 31, 2023.
viii. According to the information and explanations given to us, no transactions
relating to previously unrecorded income were surrendered or disclosed as income in the
tax assessments under the Income Tax Act, 1961 during the year.
ix. According to the information and explanations given to us, in respect of
borrowings:
(a) The Company has not defaulted in the repayment of loans or other borrowings or in
the payment of interest thereon to any lender during the year.
(b) The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
(c) In our opinion, term loans availed by the Company were, applied by the Company
during the year for the purposes for which the loans were obtained, other than temporary
deployment pending application in respect of term loans raised towards the end of the year
(d) On an overall examination of the financial statements of the Company, funds raised
on short term basis have, prima facie, not been used during the year for long-term
purposes by the Company.
(e) The Company did not have any subsidiary or associate or joint venture during the
year and hence, reporting under clause 3(ix)(e) of the Order is not applicable
(f) The Company does not have any subsidiary or associate or joint venture and hence
reporting on clause 3(ix)(f) of the Order is not applicable.
x. (a) According to the information and
explanations given to us the Company has not raised moneys by way of Public Offer or
further public offer (including debt instruments) during the year and hence reporting
under clause 3(x)(a) of the Order is not applicable.
(b) According to the information and
explanations given to us, the Company has made preferential allotment or private
placement of warrants convertible into Equity Shares during the year. The funds raised
have been used for the purpose for which funds were raised.
xi. (a) According to the information and
explanations given to us, no fraud by the Company and no material fraud on the Company
has been noticed or reported during the year.
(b) No report under section 143(12) of the Act
has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central
Government during the year and upto the date of this report.
(c) As represented to us by the Management, there were no whistle blower complaints
received by the Company during the year.
xii. The Company is not a Nidhi Company; hence reporting under clause (xii) of
paragraph 3 of the Order is not applicable to the Company.
xiii. According to the information and explanations given to us, the Company is in
compliance with Section 177 and 188 of The Companies Act, 2013, wherever applicable, for
all transactions with the related parties and the details of related party transactions
have been disclosed in the notes on Financial Statements as required by the applicable
Indian Accounting Standards.
xiv. (a) In our opinion, the Company has an adequate
internal audit system commensurate with the size and the nature of its business.
(b) We have considered, the internal audit reports issued to the Company during the
year and covering the period upto March 31, 2023.
xv. According to the information and explanations given to us, the Company has not
entered into any non-cash transactions with Directors or persons connected with him under
provisions of Section 192 of The Companies Act, 2013. Therefore, provision of clause (xv)
of paragraph 3 of the Order is not applicable to the Company.
xvi. According to the information and explanations given to us, the Company is not
required to be registered under Section 45-lA of The Reserve Bank of India Act, 1934.
Thus, paragraph 3 (xvi) a, b and c of the Order is not applicable to the Company.
The Group does not have any CIC as part of the group and accordingly reporting under
clause (xvi) (d) of the Order is not applicable.
xvii. The Company has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
xviii. M/s PKJ & CO., Chartered Accountants though appointed at the 18th Annual
General Meeting held on September 30, 2017 as the statutory Auditor of the Company for a
period of five years upto the conclusion of 23rd Annual General Meeting which was held on
August 5, 2022. To the best of our knowledge, the said auditors had not raised any issues,
objections or concerns on the Company or its financial statements.
xix. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, Asset Liability Maturity (ALM)
pattern, other information accompanying the financial statements and our knowledge of the
Board of Directors and management plans and based our examination of the evidence
supporting the assumptions, nothing has come to our attention, which causes us to believe
that any material uncertainty exists as on the date of the audit report indicating that
the Company is not capable of meeting its liabilities existing at the date of balance
sheet
as and when they fall due within a period of one year from the balance sheet date. We,
however, state that this is not an assurance as to the future viability of the Company. We
further state that our reporting is based on the facts up to the date of the audit report
and we neither give any guarantee nor any assurance that all liabilities falling due
within a period of one year from the balance sheet date, will get discharged by the
Company as and when they fall due.
xx. The Company has fully spent the required amount towards Corporate Social
Responsibility (CSR) and there is no unspent CSR amount for the year requiring a transfer
to a Fund specified in Schedule VII to the Act or special account in compliance with the
provision of section 135(6)
of the said Act. Accordingly, reporting under clause 3(xx) of the Order is not
applicable.
xxi. According to the information and explanations given to us, the Company does not
have subsidiary, associate and joint venture. Accordingly, reporting under clause 3(xxi)
of the Order is not applicable
|
For M/s Valawat & Associates, |
|
Chartered Accountants, |
|
(FRN: 003623C) |
|
Jinendra Jain |
|
Partner |
| Date:- 10-05-2023 |
M. No.072995 |
| Place: Udaipur |
UDIN:- 23072995 BGVUDO3068 |
Annexure-B to the Independent Auditors Report
(Referred to in para 2(f) under "Report on other Legal and Regulatory
Requirement" of our report of even date on the accounts for the year ended March 31,
2023)
Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the Internal Financial Controls over financial reporting of SRG Housing
Finance Limited ("the Company") as of March 31, 2023 in conjunction with our
audit of the Financial Statements of the Company for the year ended on that date.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the
Guidance Note") issued by The Institute of Chartered Accountants of India (ICAI).
These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to Companys policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act 2013.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note and the Standards on Auditing, issued by the ICAI and prescribed
under Section 143(10) of the Act, 2013 to the extent applicable, to an audit of internal
financial controls both issued by The Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A Companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A Companys internal financial control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of Financial Statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the Company are being made only in
accordance with authorizations of management and Directors of the Company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the Companys assets that could have a
material effect on the Financial Statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on
"the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting issued by The Institute of
Chartered Accountants of India".
|
For M/s Valawat & Associates, |
|
Chartered Accountants, |
|
(FRN: 003623C) |
|
Jinendra Jain |
|
Partner |
| Date:- 10-05-2023 |
M. No.072995 |
| Place: Udaipur |
UDIN:- 23072995 BGVUDO3068 |
+91-9892691696
